Finance Terms That Finally Make Sense: Stocks, Bonds, ETFs and Dividends
Coffee in hand and the dogs supervising. Jacqueline wants Michael to take a slow walk through the wild vocabulary of finance words that people will throw around like everybody was born knowing what they mean.
We start right at the beginning. Stocks. Bonds. Why they are not the same thing. Why one makes you an owner and the other makes you a loaner. Why bonds move with interest rates even though they feel like they should just sit there quietly. Then they wander into index funds, ETFs, mutual funds, dividends, and all the mystery boards and elusive committees who decide what goes inside them.
Topics include:
💭 Do bonds move in value?
💭 Why do student loans and mortgages stay the same but bonds move?
💭 What's the difference between passive index funds and active funds?
💭 Why your money often flows to the top companies even when you think you're more diversified
💭 Why some people love dividends while others don't.
💭 Why's a bond different than a person paying interest on their student loans or home loan?
The whole episode is a friendly guided tour for anyone who hears finance lingo and thinks wait what are we even talking about and why does everyone else sound like they already know the language?
